AN ACT TO PROVIDE AN INCOME TAX CREDIT FOR A PERCENTAGE OF THE COST OF INSTALLING NEW ALTERNATIVE FUELING INFRASTRUCTURE FOR CERTAIN ALTERNATIVE FUELS; TO PROVIDE AN INCOME TAX CREDIT FOR A PERCENTAGE OF THE COST OF INSTALLING A RESIDENTIAL COMPRESSED NATURAL GAS FUELING SYSTEM; TO DEFINE CERTAIN TERMS USED IN THIS ACT; TO PRESCRIBE THE MAXIMUM AMOUNT OF THE ONE-TIME CREDIT, BASED ON THE TYPE OF QUALIFIED CLEAN-BURNING MOTOR VEHICLE FUEL PROPERTY, WHICH MAY BE CLAIMED IN A TAXABLE YEAR; TO PROVIDE THAT ANY UNUSED PORTION OF THE CREDIT MAY BE CARRIED FORWARD FOR THE SUCCEEDING FIVE TAX YEARS; AND FOR RELATED PURPOSES.
Impact
The bill specifies that the income tax credit can be claimed for various forms of fueling infrastructure, including the modification of vehicles to use alternative fuels and the installation of residential fueling systems. The proposed tax credit percentages range from 50% to 75% depending on the type of infrastructure installed. Additionally, if the tax credit exceeds the amount of state income taxes due, it can be carried forward for up to five years, encouraging long-term investment in alternative fueling technologies.
Summary
House Bill 119 is designed to promote the installation of alternative fueling infrastructure in Mississippi by providing income tax credits for the installation costs of specific clean-burning motor vehicle fuel properties. This bill aims to incentivize residential and commercial investment in fueling systems that utilize alternative fuels like compressed natural gas, liquefied natural gas, and propane gas. The tax credits are structured to cover a percentage of the installation costs, making it more financially feasible for individuals and businesses to transition to cleaner fuel sources.
Contention
Notable points of contention surrounding HB119 may revolve around the allocation of state funds and the prioritization of tax incentives for alternative fueling infrastructure. Critics often raise concerns about the effectiveness of such incentives on actual market behavior and whether they will lead to substantial environmental benefits. Furthermore, discussions may focus on the potential impact this bill could have on existing fuel industries and related job sectors, as the transition towards alternative fuels might disrupt traditional fossil fuel markets.